1. LIBOR Rate-Rigging Scandal

The London interbank offered rate, or LIBOR, is an average of the interest rates that large financial institutions pay to borrow money, and it is used around the world as a benchmark for pricing trillions of dollars of financial instruments like corporate debt and student loans. This infrastructure of the global financial system remained in the background until it was revealed that several banks — including British megabank Barclays — were submitting false rates in order to signal to the market that they were healthier than they actually were and potentially influence the rate in order to profit off proprietary trades. The scandal further tarnished the reputation of the global financial industry, leading the normally business-friendly Economistto question whether finance had a “rotten heart.”